Wednesday, March 24, 2010

Mo' Fortuna

This chart shows the last five days of silver prices (SLV, the thinner black line) compared to a few silver stocks.
Put simply, Fortuna Silver (FVI.to) is whupping the sector's tush. The metal is down 4% in the period, and FVI is up 9%...that works.

I received a mail this morning from a happy FVI holder who wanted to know whether diversifying in the small silver sector wouldn't be a bad idea, eggs-in-one-basket and all that. Really, my answer is that the sector is too small to worry about diversifying inside it. Perhaps a larger vehicle like SLW or SLV would suit, but when it comes to the junior Ag miners there's nothing wrong in betting on the best of breed only. That company is FVI.to.